Thank you, hon House Chair and the big thank you also to the IFP for allowing me to swap with their place due to a section 25 meeting that I have to get to. Hon House Chairperson, the ACDP understands that the fiscal framework and revenue proposals for 2020 gives effect to our macroeconomic policy and includes, estimates of all revenue expenditure and of borrowing for that financial year; estimates of interest and debt servicing in charges; and indication of the contingency reserves necessary for an appropriate response to emergencies or other temporary needs, and other factors based on similar objective criteria.
In 2020-21, revenue estimates projected to be R1,58 trillion, with the expenditure of R1,95 trillion, leaving us with a consolidated budget deficit of R370,5 billion or some 6,8% of our GDP and climbing.
Our GDP for 2020-21 is estimated to be at some R5,4 trillion, and of great concern to the ACDP is that our gross national debt is projected to be at R3,56 trillion, or 65,6% of GDP by 2020-21. That been said, it is very clear that we are operating under a constrained financial environment.
Our economy has entered into a technical recession after a poor performance in the fourth quarter of 2019, caused by Eskom's outages. Real GDP is expected to grow by only 0,9% in 2020. Weak growth has translated to a record unemployment of 29,1% and climbing.
There has been a downward revision to estimates of tax revenue of R63,3 billion. Over the three years, we are expected to see budget reductions of R261 billion, which includes a R160,2 billion reduction in the Wage Bill. An amount of R60 billion has been set aside for Eskom and SA Airways, SAA, another bailout at the expense of the taxpayer. Our fastest growing expenditure item is our debt service costs of some R229 billion interests alone.
Clearly, our economy is in trouble. After years of looting and unparalleled corruption, with little or no consequence management, we are teetering at the edge of a junk status cliff.
What are needed are more men and women with intestinal fortitude to stand against those, intent on destroying our economy, ethical men and women of integrity. We need a fit for purpose education system that will match the skills needed by business. We need to reduce the barriers of entry to business, creating an environment which is conducive to the business sector. We must inculcate an environment of policy and political certainty, and not threaten business with expropriation without compensation. I thank you.